FTR Now

Minimum Wage Increase to Come Into Effect June 1, 2014

FTR Now

Minimum Wage Increase to Come Into Effect June 1, 2014

Date: May 6, 2014

Employers are reminded that the minimum wage rate prescribed under the Employment Standards Act, 2000 (“ESA”) will be increasing on June 1, 2014, notwithstanding the recent dissolution of the Legislature and subsequent election call.

As previously reported on our legislative blog, the increase to the minimum wage rate was accomplished by regulation on February 14, 2014 when the government filed Ontario Regulation 31/14, which amended the existing ESA regulation, O. Reg. 285/01 (Exemptions, Special Rules and Establishment of Minimum Wage) effective June 1, 2014.

Under the changes coming into effect on June 1, 2014, the general minimum wage rate will increase to $11.00 per hour. In addition, there will be increases to the various special minimum wage rates – for example, the liquor server rate will increase to $9.55 per hour, the homeworker rate to $12.10 per hour, and the student rate to $10.30 per hour (if the student is under 18, and works less than 28 hours per week or is employed during a school holiday). The regulation should be consulted for the full list of minimum wage rates.

The government had also proposed legislation that would have required annual increases to the minimum wage rate based on increases in the Consumer Price Index. This would have applied to future years following this year’s increase. This was found in Bill 165, the Fair Minimum Wage Act, 2014.

When the Legislature was dissolved on Friday, May 2, Bill 165 “died on the order paper,” and will not be passed unless reintroduced by a future government. However, this did not affect the changes to the regulations made in February, and the minimum wage increase will proceed as scheduled on June 1, 2014.